Question

ETB plans to manufacture a slim bamboo hard case for the Apple iPad, which will be sold for $ 65. ETB estimates that it can produce and sell between 3,000 and 5,000 bamboo cases a month. The following data summarize ETB’s cost structure at various output (sales) levels:


Required:
a. What monthly production (sales) level minimizes the average cost of the bamboo iPad case?
b. How many bamboo iPad cases should ETB producemonthly?


$1.99
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  • CreatedDecember 15, 2014
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